Gold trades around $1200 an ounce, NFP in focus

The precious metal traded around $1200 an ounce on Thursday, following the ECB meeting, with investors eying Friday’s NFP report.

Gold was boosted by ECB inflation forecasts upgrade and comments about stimulus, but the pressure from the strong dollar offset the gain.

The ECB raised its 2016 inflation forecasts to 1.5 percent from 1.3 percent, giving some relief to the metal as an inflation hedge.

Regarding stimulus, the ECB said it would start buying bonds on March 9, revealing that the purchases beyond September 2016, if necessary.

The generous stimulus by major central banks should help gold to rise, but investors are giving more attention to the Fed’s predicted interest rate hike later this year.

Federal Reserve Bank of Kansas City President Esther George said he wants to see an interest rate hike by the middle of the year.

The awaited non-farm payrolls data due may show American employers added 240,000 jobs last month.

The dollar index, which tracks the green currency’s movements versus a basket of major currencies, rose near an 11 1/2-year high around 96.37.